As our returning customers probably have noticed; we increased our prices, and excluded the shipping costs. We are sad that we had to take this measure, and can tell you in all honesty, that this is not because we are greedy but necessary for the survival of our company.
So what's going on? When the Corona pandemic first started in China, the country took all possible measures, to get the virus under control as quickly as possible. They succeeded and could reopen their economy rather soon.
Good for us, because our consumption, especially in the E-commerce sector grew big time during the lockdowns and china produces a majority of the consumer goods you and I purchase on a daily basis.
In the meantime, Europe and the USA are still struggling to control the virus. Workers are laid off, factories are closed, and our production is quite low these days. China can't buy our products, because we can't provide them.
And why does that lead to increased prices? Shouldn't more consumption lead to more retailers and competition? Hence lower prices?
One would think so if it wasn't for the current global container distribution imbalance, caused by the uneven volumes which are being moved between east and west. This, combined with a shortage of workers in ports and warehouses leads to a scarcity of containers in china.
Economics 101: Scarcity = more expensive.
Because of this and other factors like the Evergreen Accident in the Suez Channel, the costs to ship a container from China to Rotterdam are up by 800%. This is why we have to change our pricing and supply chain strategies, in order to stay in business.
We hope to have explained this matter sufficiently and we will keep you updated on any news. We are sorry and hope to keep you as a customer nevertheless :)